Interim Management Statement (5259B)
April 18 2012 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 5259B
Computacenter PLC
18 April 2012
Computacenter plc
Interim Management Statement
18 April 2012
Computacenter plc, Europe's leading independent provider of IT
infrastructure services, today publishes its Interim Management
Statement based on the unaudited financial information for the
period from 1 January 2012 to date.
Financial Performance
Our Services businesses at a revenue level, had a particularly
positive start to the year. Group revenues for the first quarter
increased by 9%, on a reported basis, which is 11% in constant
currency. Revenue growth in the first quarter of 2012 was
positively impacted by the acquisition in April 2011 of Top Info in
France, which we estimate contributed about one third of our
overall growth for the period. Services revenues grew 9% on a
reported basis and 12% in constant currency, largely unaffected by
the acquisition. Group Supply Chain revenues grew by 9% on a
reported basis and 11% in constant currency, about half of which
was due to the Top Info acquisition. The acquisition in July 2011
of Damax in Switzerland has not materially impacted these
numbers.
Whilst we are pleased, particularly with the Services revenue
growth, we have seen some, not unexpected impact on margin in the
period, due to the costs incurred in the on-boarding of Services
contracts and sales commissions. We expect these costs to continue
in the short term, given the size and number of large contracts
won, which are yet to go live, but we very much view these costs as
an investment in the long term profit growth of the Group. In the
UK, the on-boarding of contracts is going to plan; however, in this
regard there are some challenges in Germany where more work is
required.
United Kingdom
Overall, our UK revenues remained flat on the same period last
year, with a 8% increase in Services revenue and a 5% decline in
Supply Chain revenue. Whilst Government IT expenditure remains
weak, we have previously explained that this does not have a
material effect on our profitability. We have however seen a
capital spending freeze during the period, from many of our
investment banking customers and this adverse customer and product
mix has had a negative effect on our profit.
Germany
Overall, our German revenues grew by 14% on a reported basis and
19% in constant currency. Supply Chain revenue increased by 20% in
local currency and Services revenue by 16% in local currency. We
are benefitting from the fact that our customer base in Germany is
more focused on industrial than financial services and these
customers continue to invest in capital projects to support their
business growth.
France
Overall growth in our French revenues was 24% on a reported
basis, and 29% in constant currency. Supply Chain revenue increased
by 34% in constant currency. Including the comparative Q1 2011
performance of Top Info prior to the acquisition, Supply Chain
revenue for the now combined French business, was down by
approximately 6% in constant currency. Services revenue grew by
10%, which was almost unaffected by the acquisition. As we have
previously described, we have a full agenda in France this year. We
are pleased that we have concluded the integration of the
acquisition and we have recently completed our main office move.
Our logistics facilities will be transferred during Q3 2012, as
well as preparing to migrate to our Group ERP in 2013. However, we
have been somewhat disappointed with the financial performance in
the first quarter, particularly the challenge to our services
margins, partly due to new business take-on.
Financial Position
At the end of Q1 2012, net cash excluding Customer Specific
Financing (CSF), was approximately GBP106 million (GBP137 million
at end Q4 2011). Net cash including CSF was approximately GBP87
million (GBP114 million at end Q4 2011). We continue to benefit
from the extended credit scheme with one of our major vendors, by
approximately GBP28 million (GBP45 million at end Q4 2011).
Outlook
2012 is likely to be another year of progress for Computacenter.
We believe the Services growth rate we have experienced so far in
2012 is set to not only continue, but increase and it is critical
that we maximise this opportunity. Whilst our new contract cost of
sale and the on-boarding challenges should not be underestimated,
this Services opportunity has the potential to underpin our growth
rates in the years ahead. Our workload is therefore extremely
demanding and much remains to be done, but our outlook for 2012
remains unchanged.
Our next scheduled trading update will be the pre-close briefing
prior to our Interim Results, which is scheduled for 17 July
2012.
Enquiries
Computacenter plc
Mike Norris, Chief Executive 01707 631601
Tony Conophy, Finance Director 01707 631515
Tessa Freeman, PR Manager 01707 631514
Tulchan Communications 020 7353 4200
Christian Cowley
James Macey White
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSUBSVRUWASAAR
Computacenter (LSE:CCC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Computacenter (LSE:CCC)
Historical Stock Chart
From Jul 2023 to Jul 2024